Bartow Envisions Citywide Fiber Optic Network: Services Could Be Available Next Year

Saturday

Apr 6, 2013 at 10:48 PM

After hearing a consultant's report on options for expanding the city's existing fiber optic system to include Internet, television and telephone service to businesses and residents, commissioners told city administrators to develop a plan for implementing such an expansion.

By SUZIE SCHOTTELKOTTETHE LEDGER

BARTOW | Bartow is ready to move full speed into the fiber optic business.After hearing a consultant's report on options for expanding the city's existing fiber optic system to include Internet, television and telephone service to businesses and residents, commissioners told city administrators to develop a plan for implementing such an expansion."I think the residents are ready for it and it's something that's needed," said Mayor Leo Longworth.Fiber optic technology is considered faster and more reliable than many traditional systems and is the technology most telecommunications systems are adopting for broadband service, city officials said. Data is transmitted on light signals flowing through the fiber optic network rather than wires.If the city works out the financing, Bartow could offer the service to residents and businesses by next year at monthly costs ranging from $35 for telephone service only to $180 for premium services in telephone, Internet and television, according to a consultant's report. The city would contract with a television service provider to offer channel packages similar to cable and satellite programming. Magellan Advisors, the city's fiber optic consultant, estimated the cost to expand the city's existing fiber optic network at about $5.8 million, including $3.3 million for the fiber optic cable and the equipment to operate it. The remaining $2.5 million would subsidize the program for up to five years, when it's projected to begin generating a profit. The implementation plan will include a recommendation for funding the system expansion, said City Manager George Long."This can be done," he told commissioners during Wednesday's workshop. "There are very few negatives here. We can do it, but it has to be done properly."The city already has a fiber optic network serving government offices, schools and some businesses. It's a closed system, said Frank Canovaca, the city's information technology manager. He said the city has installed about 100 miles of fiber optic cable to service only those users. "I'd say 80 to 90 percent of that serves government buildings," he said, including city offices and the Polk County School Board. Most of the school district's buildings in the Bartow area, including administrative offices and schools in Bartow and Fort Meade, are linked in with the city's fiber optic network. A handful of businesses, as well, have connected with the system, Canovaca said, and all of Bartow's municipal buildings are tied into the net­work.It generated about $155,000 in revenue for the city last year. That network will form the backbone of an expanded system if the city moves ahead with those plans.According to the report by Magellan Advisors, Bartow could generate more than $4 million annually by 2023 by expanding the fiber optic system, with a projected profit of about $1.8 million at that time. Currently, profits from the city's electric department fund about half of the city's estimated $17.5 million general fund, and commissioners have been searching for new ways to generate revenue that could reduce the city's reliance on the electric fund. The city purchases wholesale electricity and resells it at a profit to about 11,000 residential and commercial customers, channeling it through the city-owned distribution system. John Honker, president of Magellan Advisors, said about a third of the residents in the city's 5,500 homes would need to sign up for the service for the financial projections to work, but commissioners said they didn't see that as an issue.Comcast Corp. holds the city's cable television franchise, and Longworth said he and other commissioners have fielded complaints from residents about the service for years."Without discrediting anybody, we just don't have the quality," he said.Commissioners said they perceive Comcast as their primary competitor if they move forward with the proposal. Steve Wilkerson, president of the Florida Cable Telecommunications Association in Tallahassee, said telecommunications, including telephone, Internet and cable television services, has become intensely competitive and requires a large upfront investment by any service provider. "Before the city fathers take the taxpayers' money and move in this direction, they had better understand what they're getting into," he said. "It's going to be a long time before they're making money. How long do they want to lose money? — that's the real question. The track record of municipal utilities getting money back when competing against multiple competitors is not good. I would urge the City Commission to be careful."Spero Canton, spokesman for Comcast's Florida region, said the company has upgraded its system throughout the state to improve service, including Bartow. "We continue to launch new and innovative broadband products that add greater value for our customers," he said in a prepared statement. "With digital service, picture and sound quality have been greatly improved. Due to these system enhancements, we have seen a notable reduction in the number of customer service inquiries."